The company behind the 14-year-old Sexpo brand will investigate the level of interest from investors as it seeks to raise capital through a strategic investment or a float.
The Sexpo shows, which run nationally throughout the year, have become one of the top five national shows, alongside national home, motor and boat shows.
The owner of the brand, Melbourne-based company HGC, wants to take the shows to the world stage, but needs capital to do so.
The company is planning a three-stage investment strategy. It will first attempt to gauge interest from Sexpo patrons in a possible float, it will look for investment and strategic partnerships with key industry partners, and finally it will seek external market funding for a possible float.
HGC aims to prepare disclosure documentation for a capital raising over the next six months, with a view to having a prospectus for shares by the end of November 2010.
Sexpo general manager, Rob Goodwin, says the demand to take the show around the world is strong.
The company sold its first franchise to a South African operator three years ago, and Goodwin says the show in Johannesburg is already attracting 46,000 visitors.
A documentary on the Sydney Sexpo show that was shown in the US last year had also sparked interest in that market, with 2.5 million viewers.
“I literally had thousands of emails from people asking, when are you coming?”
While Goodwin acknowledges the European and US markets are struggling somewhat due to the economic conditions, he says there are clear gaps in the market.
The largest US adult show recently went into receivership and Goodwin says competitors currently focus on male consumers, rather than females and couples as Sexpo targets.
“If we can get the females to the show, the chaps don’t seem to complain.”
The company has provisionally booked a show at Earl’s Court in London for early 2011 and also plans to take Sexpo to New Zealand in late 2010 or early 2011.
“To have that kind of growth when there is so little competition on a global basis, the world is our oyster. We’ve just got to fund the growth. “
HGC, which is also owns the Club X brand, is run by Craig Hill and has been in operation for 33 years.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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